Zhou Xiaochuan: The Keynote Of Monetary Policy Remains Unchanged, Enhancing Flexibility And Pertinence.

Zhou Xiaochuan, governor of the people's Bank of China, said recently that, on the one hand, the overall economic trend of China has not changed much. Therefore, the general fiscal and monetary policy formulation remains unchanged, and we must continue to do well in this area.

At this time, currency The policy should also be flexible and targeted.

Zhou Xiaochuan made this statement when he was interviewed by Chinese and foreign media during the twenty-fourth Ministerial Conference of the international monetary and Financial Committee of the International Monetary Fund recently held.

When a reporter asked what is more worrying about growth and inflation, Zhou Xiaochuan said that in China, the central bank has four main functions. The first is low inflation, the second is economic growth, the third is the employment rate, and the fourth is the balance of international payments. We are always concerned about these four goals. We will not focus on one but ignore others.

When a reporter asked how to deal with inflation concerns, Zhou Xiaochuan said, "we pay close attention to inflation and do not ignore inflation because we are concerned about growth." In reducing inflation, I think we need to consider the lag effect. There is no policy of reducing inflation immediately. Moreover, both domestic and international situations must be considered simultaneously. At present, many unstable and uncertain factors exist.

When it comes to the RMB exchange rate, Zhou Xiaochuan said exchange rate Policy has always been to expand the flexibility of RMB in the basic framework of managed floating exchange rate system. The exchange rate is determined by two things. First, market participants are buying and selling. In China, we have intervention by the central bank, which together forms the trend of exchange rate. Two, the exchange rate is highly related to the balance of payments. The balance of trade, current account and capital account are all very important. The central bank's consideration also depends on the balance of payments data.

Only in very special circumstances, such as when we saw the rapid deterioration of the "two housing" situation and the collapse of Lehman, we would think that the international situation calls for a change in our exchange rate policy. In addition, under normal circumstances, the international situation will be automatically reflected in the foreign exchange market.

Talking about Foreign exchange assets Diversification, Zhou Xiaochuan said that diversification is to reduce risks, the reason is that the economic situation of different countries in the world is inconsistent, and can complement each other.

Of course, during the crisis, there will be some synchronization of economic trends. But even so, different regions, assets, institutions, countries and currencies are complementary on the whole, so diversification can reduce risks.